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Charter to buy Time Warner Cable

Discussion in 'Sports and News' started by JayFarrar, May 26, 2015.

  1. JayFarrar

    JayFarrar Well-Known Member

  2. Rusty Shackleford

    Rusty Shackleford Active Member

    Charter is the devil.
  3. Batman

    Batman Well-Known Member

    Time Warner just had its merger with Comcast shot down over antitrust concerns. Now it's trying to merge with Charter?
    A merger between Nos. 1 and 2 in the industry is awful, so let's see if we can sneak a merger between Nos. 2 and 3 past the watchdogs?
    What am I missing here that makes this deal more palatable than the one that was nixed just weeks ago?
  4. DanOregon

    DanOregon Well-Known Member

    Probably because the deal would make the no. 2 carrier more competitive with Comcast, not less so under the Comcast/TW plan.
    1. Comcast 22m. 2. TW 11m 3. AT&T 6m 4. Verizon FIOS 5.5 m 5. Cox 4.4 m. 6. Charter 4.3m.

    Didn't realize how many small cable outlets are still out there.
  5. SnarkShark

    SnarkShark Well-Known Member

    So Charter is significantly smaller and bought the No. 2 cable company in the country?
  6. The Big Ragu

    The Big Ragu Moderator Staff Member

    Welcome to the casino world created by your Federal Reserve. With interest rates suppressed at zero the last 7+ years. ... plenty of "free" money around to gamble with. Let's have a party! We have had share buybacks to manipulate stock prices. Dividends galore. And now M&A activity -- borrow, borrow, borrow to create false prosperity.

    There will be $76 billion in debt on the books of the new Charter. It's all so wonderful with the assumption that interest rates will always be zilch -- it costs nothing to be in debt over your head, because we live in fantasy world -- the Fed has your back. So load up on debt and do some deals.

    It's not like that might end badly, though, is it? I mean, it's not like the lack of liquidity the Federal Reserve has created in the debt markets might end with a panic or anything, when a few sellers realize there are no buyers, and we get a stampede sending rates skyrocketing? If / when that happens, it is going to make the mortgage defaults in 2008 / 9 look quaint. And Charter (among lots of others) is going to drown in that debt.
  7. RecoveringJournalist

    RecoveringJournalist Well-Known Member

    I keep hearing that Google is going to put out a TV package that will demolish the competition. I think they're testing it now, but it seems like there's been buzz about this for a couple years now. I hope it happens.
  8. DanOregon

    DanOregon Well-Known Member

    The cable companies are now more valued for their broadband than for their TV properties.
  9. The Big Ragu

    The Big Ragu Moderator Staff Member

    You are very correct. As they should be -- broadband is the future of what they do. Otherwise, they will become obsolete. It has been happening pretty quickly. During its earnings call on Monday, Neil Smit of Comcast, which is the largest cable provider in the country, said that for the first time, the company has more Internet subscribers than cable subscribers.
  10. 93Devil

    93Devil Well-Known Member

    No one was doing this with home lending rates circa 1999-2007. That was all fine and good.

    At least now it won't be John Q. Publicn and Teddy Bluecollar left in shatters on the side of the road while a very small few collect bonuses.
  11. Donny in his element

    Donny in his element Well-Known Member

    Google Fiber started in Kansas City, on both sides of the state line, in mid-2013 and continues to buildout in the suburbs. I've been a subscriber and it's pretty great when compared to Time Warner and Comcast/Xfinity.

    Fiber is also now in Austin and Provo and I think Google just announced seven more markets it's expanding to.
  12. RecoveringJournalist

    RecoveringJournalist Well-Known Member

    Do you know what the cost is?
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